KENNETH BUILDERS AND DEVELOPERS LTD Vs. UOI

JUDGEMENT

(1.) THE Delhi Development Authority issued an advertisement on its website on 20.03.2006 announcing DDAs first public-private participation project involving auction of prime residential land at Tehkhand in South Delhi. As per the said announcement, the new initiative to involve the private sector in Delhis development was taken to meet the new challenges of an ever evolving capital city and its growing housing needs. By virtue of the said announcement, the DDA invited private parties for the development of the composite project area of 14.3 hectares of prime land at Tehkhand in South Delhi for building 750 premium residential flats to be sold by private real estate development on free sale basis, with a maximum FAR of 80000 sq. metres and maximum ground coverage of 15000 sq. metres. As regards the location of the project area, it was mentioned that Tehkhand is located in the heart of South Delhi next to Kalkaji Extension near the sprawling commercial complex of Nehru Place and Okhla Industrial Estate. THE private real estate companies were free to develop, construct and market these 750 high quality homes in a self contained community with facilities like school, community centre, neighbourhood convenience store and other spaces as per the DDA norms.

(2.) IN addition to the above, the developer would have to construct 3500 re-settlement houses for the economically weaker sections of society, of 26 sq. metres each (super area) as per the DDAs specification with facilities like schools, neighbourhood playground, park community hall, health centre, convenience store etc. It was also stipulated that all re- settlement houses and the developed common facilities would be handed over to the DDA for allotment. The said project was to be allotted through auction to be held on 26.04.2006 at 10:30 am at the DDA Auction Hall, Vikas Sadan, New Delhi.

(3.) AMONGST others, the petitioner made a bid at the said auction held on 26.04.2006. The petitioners bid of Rs 450.10 crores was the highest and as per the condition of the auction, the petitioner deposited a sum of Rs 111.52 crores representing 25% of the bid amount by way of earnest money deposit on that date itself. This was, of course, in addition to the sum of Rs 1 crore already deposited for the purposes of participating in the auction. Thereafter, the DDA issued a demand-cum-allotment letter dated 15.06.2006 in favour of the petitioner. It is relevant to note that the nature of property in the demand-cum-allotment letter was shown to be "residential". The balance amount of Rs 3,37,50,75,016/- was required to be paid by the petitioner. The same was paid by the petitioner on 11/9/2006. Consequently, the petitioner had paid the entire bid amount of Rs 450.01 crores to DDA by 11/9/2006.